Manila: Cease and desist orders (CDOs) have been issued by the Securities and Exchange Commission (SEC) against seven online lending firms operating unregistered.

According to Philippines News Agency, the Commission stated on Monday that the CDOs were issued on August 15 against Cash Konek, Pesosuki, Yescom Lending-Quick Cash Loan, Peso101-Fast Loans PH, Peso Cow-Mabilis Pera Loan, Swiftloan: Loan App Philippines, and Pera Loan: Fast Cash PH. These firms were stopped from "promoting or facilitating lending-related transactions without the necessary registration and approval from the Commission."

The SEC explained that "the orders also cover the companies' owners, operators, promoters, representatives, agents, and any and all persons claiming or acting on their behalf." The unregistered online lending platforms (OLPs) of these firms violate SEC Memorandum Circular (MC) No. 19, Series of 2019, which mandates financing and lending firms to disclose their OLPs, while their operations infringe upon registration policies.

The Commission highlighted that Republic Act 11765, also known as the Financial Products and Services Consumer Protection Act, "authorizes the SEC to impose enforcement actions, such as a CDO, against financial service providers for noncompliance with the provisions of the law, its implementing rules, and other applicable laws."

The companies' operations of unregistered and undisclosed OLPs circumvent the Commission's regulatory and supervisory authority, thereby exposing the general public to potential risks, such as abusive and unfair debt collection practices, unjust interest rates, and violation of data privacy rights, according to FinLend. The SEC emphasized the necessity of issuing these CDOs to prevent further harm or prejudice to the public and to safeguard the integrity of the regulatory framework governing lending companies.